- PE Ratio: 19
- Dividend Yield: 3.3%
- Payout Ratio: 60%
You know what’s not going out of style anytime soon? Clorox (CLX) products like Pine-Sol, Glad Bags, Kingsford Charcoal and Fresh Step cat litter.
In fact, it’s that kind of steady demand that’s helped to fuel a 36 year consecutive dividend increase run from Clorox, one that shows no sign of ending in the near — or even distant — future.
That’s not to suggest the company won’t have to work for you to earn those growing dividend checks: consumer products stocks are under pressure, and Clorox is under the gun to grow faster than its recent three-year 7% clip. The good news is that net income is growing thanks to increased gross margins and cost cutting. It’s nice to have pricing power.
That power is helping to drive operating cashflow of $775 million, easily covering CLX’s $335 million in dividend payouts last year. Bottom line? Your RMD dollars will throw off a nice 71 cents per share quarterly for that investment, with more to come down the road.